John Mackhttp://www.businessinsider.com/category/john-mack
en-usSun, 02 Aug 2015 17:18:18 -0400Sun, 02 Aug 2015 17:18:18 -0400The latest news on John Mack from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/mike-bloomberg-spend-more-than-50-million-on-gun-control-group-2014-4Mike Bloomberg Might Spend Even More Than $50 Million On His New Gun-Control Group http://www.businessinsider.com/mike-bloomberg-spend-more-than-50-million-on-gun-control-group-2014-4
Wed, 16 Apr 2014 13:56:00 -0400Hunter Walker
<p><img src="http://static1.businessinsider.com/image/534ec2816bb3f7123824be5f-800-/ap886152692544.jpg" border="0" alt="Michael Bloomberg" width="800" /></p><p>The $50 million that billionaire and former New York City Mayor Michael Bloomberg said he would spend on his <a href="http://www.businessinsider.com/michael-bloomberg-nra-elections-gun-control-violence-2014-4">newly launched gun-control group</a>,&nbsp;Everytown for Gun Safety, might be just the tip of the iceberg.</p>
<p>In a press call on Wednesday, Everytown for Gun Safety President John Feinblatt told Business Insider that Bloomberg could put even more of his money into the organization.</p>
<p>"The mayor has always said that he will spend what needs to be spent to make Americans safer," Feinblatt said.</p>
<p>These figures put the group in a position to outspend the National Rifle Association, which put <a href="http://www.washingtonpost.com/blogs/the-fix/wp/2013/01/30/how-the-nra-spent-32-million-in-2012/">$32 million into its political efforts in 2012</a>.&nbsp;</p>
<p>At its core, Everytown for Gun Safety will unite two Bloomberg-backed gun-control groups: Mayors Against Illegal Guns and&nbsp;Moms Demand Action for Gun Sense in America.</p>
<p>Feinblatt, a longtime policy advisor to Bloomberg, said on Wednesday that it was one year ago this week that a bipartisan compromise that would have expanded background checks was defeated in the Senate. Feinblatt said Everytown for Gun Safety would keep pushing for federal legislation but would also focus on other areas that he described as having been "fields of play formerly occupied almost solely by the gun lobby."</p>
<p>"Everytown will continue to push for change in Washington, but we'll also move beyond Congress and bring the fight for common-sense gun policies to state capitals, to corporate boards, and to state and federal elections," Feinblatt said.&nbsp;</p>
<p>While gun-control advocates have been unsuccessful in Congress, Feinblatt argued that the movement has already made progress at the state level.</p>
<p>"If&nbsp;you look at the past year, significant things have happened in the states," he said. "We now have background-check legislation in 16 states plus the District of Columbia, and we have evidence that it works."</p>
<p>Feinblatt pointed out that Bloomberg isn't the group's only deep-pocketed financial backer. He said Warren Buffett would be on Everytown's advisory board and that the group will be "working with" former Morgan Stanley CEO John Mack and Huffington Post founder Kenneth Lerer.</p>
<p>Feinblatt said Everytown also has substantial grassroots support.</p>
<p>"I&nbsp;think it's important to note that, yeah, Michael Bloomberg is a major donor, but we also have 34,000 other donors across the country, all of whom are supporting our efforts," Feinblatt said. "As of today, I expect that 34,000 to increase markedly."</p>
<p>While Washington won't necessarily be Everytown's main focus, Feinblatt said Bloomberg would be making his presence felt in the 2014 elections.</p>
<p>"Mayor&nbsp;Bloomberg couldn't be clearer that he is going to hold people accountable if they vote against gun safety and he's going to reward those people who vote to keep Americans safer," he said.</p><p><a href="http://www.businessinsider.com/mike-bloomberg-spend-more-than-50-million-on-gun-control-group-2014-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/john-mack-penthouse-condo-225-million-2013-1John Mack's Son Is Selling This Sick 9-Bedroom Penthouse Condo For $22.5 Millionhttp://www.businessinsider.com/john-mack-penthouse-condo-225-million-2013-1
Mon, 28 Jan 2013 12:36:00 -0500Linette Lopez
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5106b5b46bb3f75e20000012-400-300/john-mack-condo.png" border="0" alt="John Mack Condo" width="400" height="300" /></p><p>Dauntless real estate blog <a href="http://realestalker.blogspot.com/2013/01/big-time-banker-john-j-mack-lists.html">The Real Estalker</a> reports that former Morgan Stanley CEO John Mack put his 9-bedroom Upper East Side penthouse condo on the market for $22.5 million.</p>
<p>But that's wrong. The house belongs to John Mack's son, a photographer and <a href="http://www.abebooks.com/Xibalba-Lost-Dreams-Mexican-Rainforest-Steines/1425351177/bd">author. </a></p>
<p>We can see where the confusion comes from. In 2009, <a href="http://observer.com/2009/09/morgan-stanley-ceo-john-mack-buys-135-m-carriage-house-12car-garage-included/">John Mack Senior bought one of Bunny Mellon's</a> (seemingly endless) real estate holdings, a "carriage house" on East 70th Street for $13.5 million. Mack has mentioned having an apartment in the city before too (along with holdings in Westchester and North Carolina), so it wouldn't be surprising if he sold his old holdings and moved into new, remodeled digs.</p>
<p>Even though that's not the case, John Mack Jr.'s pad is definitely fit for a CEO. There's an awesome view from the top, 11 foot ceilings, the only fireplace in the building, and great big windows.</p><img src="http://static2.businessinsider.com/image/5106a822ecad04f219000019-400-300/.jpg" alt="" />
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<br/><br/><a href="http://www.businessinsider.com/john-mack-penthouse-condo-225-million-2013-1#-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/john-mack-wall-street-compensation-2012-10John Mack: 'Unbelievably Generous' Wall Street Compensation Will Have To Come Downhttp://www.businessinsider.com/john-mack-wall-street-compensation-2012-10
Wed, 17 Oct 2012 11:35:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static6.businessinsider.com/image/507ecc1369bedd9512000000-400-300/john-mack.jpg" border="0" alt="John Mack" /></p><p>Today on <a href="http://www.bloomberg.com/video/what-is-the-future-of-wall-street-tCSdXjvOQCGAuqehQ4mwtA.html">Bloomberg TV's "Market Makers"</a> co-anchor Stephanie Ruhle asked Wall Street legend John Mack if he thought there should be celebration of many of the one-percent living the American dream.&nbsp;</p>
<p><span>The former CEO and chairman of Morgan Stanley's answer suggests that Wall Street's compensation and the way it showed off that pay &nbsp;needs to change.&nbsp;</span></p>
<p>Here's Mack's response that <a class="hidden_link" href="http://www.businessinsider.com/blackboard/bloomberg">Bloomberg</a> TV transcribed (emphasis ours):&nbsp;</p>
<p style="padding-left: 30px;"><span>"I think it's simple. If you are unemployed and you see others doing really well for very long period of time and you see friends and families and people you deal with in the community losing their jobs -- I assume the number is 23 million, that was thrown out yesterday around 8% unemployment &hellip;after a while to say how about me? I can understand that. <strong>Let's be totally honest, a lot of people that have done very well have not handled that wealth very well. That is part of the issue with Wall Street. I think it's really changing. I think that the kind of money that was made in the way it was flaunted is wrong.</strong> I grew up in North Carolina, and I know what it is like to grow up in a small town and have a lot of friends, but there was not a lot of money being made there. People look at me when I was running a company and said look how much money Mack's making. We have an American dream, and we have to give an opportunity for everyone to do well and when one group does extremely well and there's a large group not as doing well, we need to make changes."</span></p>
<p>That being said, Mack, who came to Wall Street in 1968 earning $8,000 a year at the time, emphasized that there has to be a culture change in the industry.</p>
<p>From the time he started global markets took off and there was more technology and de-regulation. &nbsp;He said they were in the "right place and right time" and took on more risk.</p>
<p><strong>"The money was unbelievably generous,"</strong> Mack told <a href="http://www.businessinsider.com/blackboard/bloomberg" class="hidden_link">Bloomberg</a> TV. &nbsp;</p>
<p>However, now that we've gone through a huge financial crisis, the No. 1 focus needs to be on safety and soundness, he said. This means banks need to add more equity to their balance sheet and take on less risk, he explained. &nbsp;</p>
<p>As for banks increasing shareholder value, Mack said there's already been consolidation and layoffs, but <strong>"at the end of the day, the one area that has to be squeezed is the compensation number." &nbsp;</strong></p>
<p>In 2006, Mack, then-CEO of <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a>,<a href="http://money.cnn.com/2006/12/15/news/newsmakers/compensation/"> took home more than $40 million in compensation</a>, including salary, stock and options, according to a <a href="http://www.businessinsider.com/blackboard/cnn" class="hidden_link">CNN</a> Money report. &nbsp;</p>
<p>However, in 2007, 2008 and 2009, Mack refused to accept his year-end bonus, <a href="http://abcnews.go.com/Business/morgan-stanley-ceo-john-mack-rejects-bonus/story?id=9372661#.UH7OBGmNPGE">according to ABC News</a>.&nbsp;</p><p><a href="http://www.businessinsider.com/john-mack-wall-street-compensation-2012-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/john-macks-new-gig-2012-4John Mack's New Gighttp://www.businessinsider.com/john-macks-new-gig-2012-4
Thu, 12 Apr 2012 16:51:00 -0400Linette Lopez
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ce2a160ccd1d50327010000/john-mack.jpg" border="0" alt="John Mack" /></p><p>Now that John Mack isn't the head of <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a>, he probably has a lot of time on his hands. That can't be good for someone who was once so active (at least, we imagine).</p>
<p>So here's what he's doing. According to <a href="http://nymag.com/daily/intel/2012/04/ex-morgan-stanley-ceo-mack-joins-lending-club.html">New York Magazine, </a>he's sitting on the board of Lending Club, a San Francisco based lender made up of outside investors that provide loans of up to $35,000 to customers and then, naturally, collects interest on them.</p>
<p>From NY Magazine, Daily <a href="http://www.businessinsider.com/blackboard/intel" class="hidden_link">Intel</a>:</p>
<p style="padding-left: 30px;">&ldquo;We are a lower-cost, more efficient alternative to the banks,&rdquo; says Lending Club's... CEO, Renaud Laplanche, pointing out that in the past few years, big banks have had to raise interest rates on consumer credit cards and lower payments to investors in order to comply with regulations and finance their big, lumbering operations. &ldquo;The banking sector is one of the last big industries that is still very bureaucratic,&rdquo; he adds. With the addition of John Mack to what Laplanche calls an &ldquo;all star&rdquo; group of investors that includes &ldquo;government officials, hedge-fund managers, a lot of pretty well-known people interested in lots of lending and consumer credit,&rdquo;</p>
<p>So yeah, a bunch oh rich guys lending you money. Sounds right.</p><p><a href="http://www.businessinsider.com/john-macks-new-gig-2012-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/eliot-spitzer-rips-into-john-mack-for-saying-banks-are-in-the-business-to-be-profitable-2012-4Eliot Spitzer Rips Into John Mack For Saying Banks Are In The Business To Be Profitablehttp://www.businessinsider.com/eliot-spitzer-rips-into-john-mack-for-saying-banks-are-in-the-business-to-be-profitable-2012-4
Tue, 10 Apr 2012 11:25:59 -0400Julia La Roche
<p>Former New York State Attorney General and ex-CNN anchor <a class="hidden_link" href="http://www.businessinsider.com/blackboard/eliot-spitzer">Eliot Spitzer</a>, <a href="http://www.youtube.com/watch?v=KQ8OleVzNa0&amp;feature=youtu.be&amp;a">who is now the host of "Viewpoint with Eliot Spitzer" on Current TV</a>, ripped into Morgan Stanley's former CEO and chairman <a class="hidden_link" href="http://www.businessinsider.com/blackboard/john-mack">John Mack</a> for his comments in his recent New<em> York Magazine</em> profile.&nbsp;<em> </em></p>
<p>From <a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index2.html"><em>New York Mag</em></a>:</p>
<p style="padding-left: 30px;"><em>Mack doesn&rsquo;t buy that argument, or the other one ignited by a former Goldman vice-president who last month resigned in a Times op-ed, citing disillusionment with an industry that has become overly focused on profit. <strong>&ldquo;I can&rsquo;t believe the Times even printed that,&rdquo; Mack snorts. &ldquo;Last time I checked, we were in business to be profitable.</strong> The guy&rsquo;s been working at the firm for twelve years. I mean, it took you twelve years to figure out what you figured out?&rdquo;</em></p>
<p>"You know what John, there's a difference between making money the right way and cheating your customers.&nbsp; There's a difference between leveraging yourself to the hill and then getting bailed out by taxpayers. And by the way, have you returned that $40 million bonus?&nbsp; I don't think so, but you should," Spitzer said.</p>
<p>Watch Spitzer here.</p>
<p><strong>SEE ALSO:</strong> <a href="http://www.businessinsider.com/heres-what-john-mack-said-to-a-morgan-stanley-trader-who-was-freaking-out-and-crying-during-the-1987-stock-market-crash-2012-4">John Mack's Amazing Advice To A Trader Who Was Freaking Out After The Crash Of 1987 &gt;</a></p>
<p><iframe width="420" height="315" frameborder="0" src="http://www.youtube.com/embed/KQ8OleVzNa0"></iframe></p><p><a href="http://www.businessinsider.com/eliot-spitzer-rips-into-john-mack-for-saying-banks-are-in-the-business-to-be-profitable-2012-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/well-now-we-know-what-kind-of-beer-former-mogran-stanley-ceo-john-mack-likes-2012-4Well Now We Know What Kind Of Beer Former Morgan Stanley CEO John Mack Likeshttp://www.businessinsider.com/well-now-we-know-what-kind-of-beer-former-mogran-stanley-ceo-john-mack-likes-2012-4
Mon, 09 Apr 2012 15:03:00 -0400Linette Lopez
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4eca65d86bb3f79a48000014/beer.jpg" border="0" alt="beer" /></p><p>New York Magazine's Jessica Pressler <a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index1.html">did a hefty piece on former Morgan Stanley CEO John Mack for this month's issue.</a> It covers a lot of ground &mdash; Mack's reputation, the financial crisis, his plans for the future...</p>
<p>And yes, that is all important, but one of our favorite parts had nothing to do with any of that. It's about beer <a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index1.html">(from NY Magazine</a>):</p>
<p style="padding-left: 30px;">Before getting into his past, Mack needs a drink. <strong>&ldquo;I would like a very cold beer,&rdquo; he announces to the waitress at Loi. &ldquo;The darkest one you have.&rdquo;</strong></p>
<p><strong><br /></strong>So if you ever fulfill your fantasy of hanging out with Mack, you now know what to order him.</p><p><a href="http://www.businessinsider.com/well-now-we-know-what-kind-of-beer-former-mogran-stanley-ceo-john-mack-likes-2012-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/heres-what-john-mack-said-to-a-morgan-stanley-trader-who-was-freaking-out-and-crying-during-the-1987-stock-market-crash-2012-4John Mack's Amazing Advice To A Trader Who Was Freaking Out After The 1987 Crashhttp://www.businessinsider.com/heres-what-john-mack-said-to-a-morgan-stanley-trader-who-was-freaking-out-and-crying-during-the-1987-stock-market-crash-2012-4
Mon, 09 Apr 2012 12:24:36 -0400Julia La Roche
<p><em><img style="float:right;" src="http://static4.businessinsider.com/image/4e723e22eab8ea4770000032/john-mack.jpg" border="0" alt="John Mack" />New York Magazine's</em> contributing editor Jessica Pressler now has a monthly business column where she will be profiling major business figures, <a href="http://www.talkingbiznews.com/"><em>TalkingBizNews</em> reports</a>.</p>
<p>For her debut column, <a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index1.html">Pressler spoke with Morgan Stanley's former CEO and chairman John Mack to see what he's been up to</a> since departing the investment bank.</p>
<p>All of his post-retirement endeavors aside, here's something we learned about Mack when he was head of the fixed-income desk during the 1987 stock market crash and one of his traders was freaking out.</p>
<p>From <a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index1.html">NYMag</a>:</p>
<p style="padding-left: 30px;"><em>Back when Mack started as a bond trader at <a class="hidden_link" href="http://www.businessinsider.com/blackboard/morgan-stanley">Morgan Stanley</a>, in 1972, things were a little different. &ldquo;There were only 350 people,&rdquo; he says. &ldquo;They had $6 million in capital. Any time we priced a deal, every partner at the firm came to the meeting.&rdquo; is first brush with disaster came during the 1987 stock-market crash. He was running the fixed-income desk, where he found one of his team members crying. <strong>&ldquo;What&rsquo;s wrong with you?&rdquo; Mack asked. &ldquo;He said, &lsquo;I&rsquo;m going to lose everything I made.&rsquo; I said, &lsquo;Well, let me ask you a question: What did you start with?&rsquo; He said, &lsquo;I started with nothing.&rsquo;&thinsp;&rdquo; Mack pauses for dramatic effect. &ldquo;I said to him, &lsquo;Well, then, make it back.&rsquo;&thinsp;&rdquo;</strong></em></p>
<p><em></em>Well said, sir.<strong></strong></p>
<p><strong><a href="http://nymag.com/news/business/themoney/john-mack-2012-4/index1.html">Read the rest of Pressler's column here &gt;</a><br /></strong></p><p><a href="http://www.businessinsider.com/heres-what-john-mack-said-to-a-morgan-stanley-trader-who-was-freaking-out-and-crying-during-the-1987-stock-market-crash-2012-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/heres-john-macks-smart-aleck-response-to-a-morgan-stanley-employees-complaints-about-decreasing-seamless-allowances-2012-3Here's What John Mack Did After A Morgan Stanley Employee Whined About Not Having Enough Money For Sparkling Waterhttp://www.businessinsider.com/heres-john-macks-smart-aleck-response-to-a-morgan-stanley-employees-complaints-about-decreasing-seamless-allowances-2012-3
Mon, 05 Mar 2012 15:02:00 -0500Lisa Du
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4e9491ae6bb3f7b93d000035/perrier-water.jpg" border="0" alt="perrier water" /></p><p><a href="http://www.businessinsider.com/blackboard/fast-company" class="hidden_link">Fast Company</a> has a telling and amusing guide on&nbsp;<a href="http://www.fastcompany.com/1822449/scamming-seamless-how-big-banks-are-getting-taken-for-big-cash">how bankers can use their Seamless allowances to their advantage</a>. [<a href="http://dealbook.nytimes.com/2012/03/05/mealtime-moneyball-hacking-seamless/">h/t DealBook</a>]</p>
<p>We found this anecdote&nbsp;from a <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a> source especially hilarious, for its sheer audacity. <a href="http://www.fastcompany.com/1822449/scamming-seamless-how-big-banks-are-getting-taken-for-big-cash">From Fast Company</a>:</p>
<p style="padding-left: 30px;"><span>When <a href="http://www.businessinsider.com/blackboard/lehman-brothers-1" class="hidden_link">Lehman Brothers</a> went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] <a href="http://www.businessinsider.com/blackboard/john-mack" class="hidden_link">John Mack</a> 'Da Knife' and a collection of analysts. </span></p>
<p style="padding-left: 30px;"><span>One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack.</span></p>
<p><span>Go John Mack?</span></p>
<p><strong><a href="http://www.fastcompany.com/1822449/scamming-seamless-how-big-banks-are-getting-taken-for-big-cash">Read the whole report at Fast Company &gt;</a></strong></p><p><a href="http://www.businessinsider.com/heres-john-macks-smart-aleck-response-to-a-morgan-stanley-employees-complaints-about-decreasing-seamless-allowances-2012-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/5-reasons-morgan-stanley-cant-catch-a-break-this-week-2011-125 Reasons Morgan Stanley Can't Catch A Break This Weekhttp://www.businessinsider.com/5-reasons-morgan-stanley-cant-catch-a-break-this-week-2011-12
Wed, 14 Dec 2011 11:00:24 -0500Ben Walsh
<p>Barely two weeks after it was downgraded to from A to A- with a negative outlook by S&amp;P, <a class="hidden_link" href="http://www.businessinsider.com/blackboard/morgan-stanley">Morgan Stanley</a> is having another bad week in the press. With Europe in crisis and Jon Corzine seemingly on Capitol Hill on an hourly basis, press officers at banks must have hopped for a week out of the headlines.</p>
<p>Morgan Stanley has not been so lucky.</p>
<p>Here are five stories that the white shoe firm wish would go away:</p>
<p><strong>1) Your ex-CEO through a lavish going away party for himself. </strong></p>
<p><a class="hidden_link" href="http://www.businessinsider.com/blackboard/john-mack">John Mack</a> held an exclusive after-party to his official retirement dinner using company cash, a move that is less than in tune with these recessionary times.</p>
<p>His former colleagues were upset enough to <a href="http://www.foxbusiness.com/industries/2011/12/12/morgan-stanley-employees-fuming-over-macks-big-bash/">complain</a> to Fox's <a class="hidden_link" href="http://www.businessinsider.com/blackboard/charlie-gasparino">Charlie Gasparino</a>.</p>
<p>As we reported <a href="http://www.businessinsider.com/charlie-gasparino-morgan-stanley-party-2011-12">earlier</a>, after-party took place at The Temple of Dendur, an ancient Egyptian temple reassembled at the Met, costs companies that become "patrons" of the museum an up-front fee of $60,000, which then allows them to rent the space once a year and then pay another $38,000 to hold a two-hour reception.</p>
<p><strong>2) Before that, Mack was talking about how if he did it all over again, he'd ditch Wall Street and sell women's shoes instead.</strong></p>
<p>When a long-time leader of a firm retires, the playbook is clear.</p>
<p><img style="float:right;" src="http://static3.businessinsider.com/image/4e8a80b269bedd634a000010/morgan-stanley.jpg" border="0" alt="Morgan Stanley" />He makes a few select media appearances, talks about the honor of working with such great people, how he will miss them all, how his successor will push the firm forward and that the whole ride was so great that he'd do it all over again.</p>
<p>Less ideal is that he reveals his long-held passion to be a <a href="http://www.businessinsider.com/john-mack-womens-shoes-2011-12">women's shoe salesman</a>. Although you have to admire Mack's candor, it was hardly on message.</p>
<p><strong>3) You were forced to take a $1.8 billion loss to settle a mortgage-backed securities related lawsuit.</strong></p>
<p>Morgan Stanley <a href="http://www.businessinsider.com/morgan-stanley-just-settled-its-mbia-lawsuit-at-a-huge-loss-2011-12">settled</a> a suit with bond insurer <a class="hidden_link" href="http://www.businessinsider.com/blackboard/mbia">MBIA</a> over faulty mortgage-backed securities at a $1.8 billion pre-tax loss.</p>
<p>Investors actually took the news positively, but <a href="http://www.businessinsider.com/morgan-stanley-just-settled-its-mbia-lawsuit-at-a-huge-loss-2011-12">talking</a> about how a loss is actually ok is never how a financial institution wants to spend its Tuesday.</p>
<p><strong>4) A notorious bank analyst chopped almost 1.5% off your stock price by cutting his price target and earnings estimates.</strong></p>
<p>Yesterday, <a class="hidden_link" href="http://www.businessinsider.com/blackboard/dick-bove">Dick Bove</a> cut his price targets and estimates on Morgan Stanley, along with its competitor <a class="hidden_link" href="http://www.businessinsider.com/blackboard/goldman-sachs">Goldman Sachs</a>. Morgan Stanley closed down 1.4% at $15.17.</p>
<p><strong>5) You are giving back $700 million investors in your sexy global real-estate fund.</strong></p>
<p>The <a class="hidden_link" href="http://www.businessinsider.com/blackboard/wall-street-journal">Wall Street Journal</a> is <a href="http://online.wsj.com/article/SB10001424052970204336104577096793492816570.html?mod=rss_whats_news_us&amp;utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29">reporting</a> that Morgan Stanley has been forced to return approximately $700 million and cut fees in order to persuade investors to keep its global real-estate fund alive.</p>
<p>Getting investors to put up large amounts of cash with steep fees and significant redemption restrictions used to be easy, especially if you called the vehicle a 'global real-estate fund'. Not any more and Morgan Stanley will have to scramble to find another revenue source to make up for lost fees.</p>
<p>All in all, not the kind of stories the media team at any bank wants to deal with.</p><p><a href="http://www.businessinsider.com/5-reasons-morgan-stanley-cant-catch-a-break-this-week-2011-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/charlie-gasparino-morgan-stanley-party-2011-12GASPARINO: Here's Why Morgan Stanley Employees Are Angry About John Mack's After-Partyhttp://www.businessinsider.com/charlie-gasparino-morgan-stanley-party-2011-12
Tue, 13 Dec 2011 09:16:00 -0500Julia La Roche
<p><img style="float:right;" src="http://static4.businessinsider.com/image/4e723e22eab8ea4770000032/john-mack.jpg" border="0" alt="John Mack" /></p><p>Fox Business Network's senior correspondent <a href="http://www.businessinsider.com/blackboard/charlie-gasparino" class="hidden_link">Charlie Gasparino</a> reports in his <a href="http://www.foxbusiness.com/industries/2011/12/12/morgan-stanley-employees-fuming-over-macks-big-bash/">latest exclusive</a> that several <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a> employees are fuming over chairman John Mack's after-party.</p>
<p>The after-party, which only a select few were invited to attend after the departing chairman's company party last week, took place in the Temple of Dendur in the Metropolitan Museum of Modern Art, the report said.</p>
<p>The employees who were left out aren't mad because they weren't invited.&nbsp;</p>
<p><strong>They're angry that Morgan Stanley allegedly dipped into company funds to pay for the event, the report said.</strong></p>
<p>The Temple of Dendur, which is an ancient Egyptian temple reassembled at the Met, costs companies that become "patrons" of the museum an up-front fee of $60,000, which then allows them to rent the space once a year and then pay another $38,000 to hold a two-hour reception, Gasparino reported.</p>
<p>Meanwhile, Morgan Stanley's stock price has been hammered this year and there's talk of <a href="http://www.foxbusiness.com/markets/2011/10/05/morgan-stanley-ceo-to-employees-dont-expect-sizeable-if-any-bonuses-this-year/">lower bonuses</a> at the firm.</p>
<p><strong>SEE ALSO:</strong> <a href="http://www.businessinsider.com/gasparino-morgan-stanley-will-not-silence-me-with-death-threats-2011-9">GASPARINO: 'Morgan Stanley Will Not Silence Me With Death Threats' </a></p>
<p><strong>FOR MORE:</strong> <a href="http://www.businessinsider.com/rodman-and-renshaw-dinner-gala-2011-9">What Happens Inside A Fancy Wall Street Party At a Museum</a></p><p><a href="http://www.businessinsider.com/charlie-gasparino-morgan-stanley-party-2011-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/john-mack-womens-shoes-2011-12Here's Why Morgan Stanley Chair John Mack's Dream Job Is Selling Women's Shoeshttp://www.businessinsider.com/john-mack-womens-shoes-2011-12
Fri, 09 Dec 2011 16:37:00 -0500Lisa Du
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ee27ed56bb3f74f1800001a/john-mack-shoes.jpg" border="0" alt="John Mack, Shoes" /></p><p>One of the biggest switch-overs on Wall Street this year could be <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a> Chairman John Mack stepping down from his post at year's end. Current CEO <a href="http://www.businessinsider.com/blackboard/james-p-gorman" class="hidden_link">James Gorman</a> will succeed him in the post.</p>
<p>Just this Wednesday, John Carney at <a href="http://www.businessinsider.com/blackboard/cnbc-1" class="hidden_link">CNBC</a> reported that <a href="http://www.businessinsider.com/morgan-stanley-chair-john-mack-farewell-party-2011-12">Morgan Stanley had their huge going-away party for Mack, with lots of high-profiled guests in attendance</a>.</p>
<p>Then yesterday, <a href="http://www.businessinsider.com/blackboard/charlie-gasparino" class="hidden_link">Charlie Gasparino</a> at Fox Business News <a href="http://www.foxbusiness.com/2011/12/08/morgan-stanleys-mack-if-had-to-do-this-all-again-would-be-shoe-salesman/">got the inside scoop on what happened at the party from his source</a>. Seems like it was fairly uneventful event aside from the unveiling of an oil painting&nbsp;done to commemorate Mack (Mack apparently thought his fingers were too fat) and a friendly roast from Gorman.</p>
<p>Mack also revealed some <em>interesting</em> personal information. <a href="http://www.foxbusiness.com/2011/12/08/morgan-stanleys-mack-if-had-to-do-this-all-again-would-be-shoe-salesman/">From Gasparino</a>:</p>
<p style="padding-left: 30px;"><span style="color: #000000;">Towards the end of the event, Mack also disclosed one little known personal fact about himself: He has something of a shoe fetish. Referring to McFadden&rsquo;s earlier comment, Mack said: <strong>&ldquo;I do&nbsp;<span class="kLink">love</span>&nbsp;shoes, just women&rsquo;s shoes. I told my wife that if I had to do this all again, I would be a shoe salesman.&rdquo;</strong></span></p>
<p><span style="color: #000000;"></span><span>The news was <a href="http://dealbreaker.com/2011/12/john-mack-if-i-werent-a-banker-i-would-have-been-a-womens-shoe-salesman/">also reported by DealBreaker yesterday</a>.</span></p><p><a href="http://www.businessinsider.com/john-mack-womens-shoes-2011-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/morgan-stanley-chair-john-mack-farewell-party-2011-12Morgan Stanley Is Throwing A Huge Rager Tonight To Honor Outgoing Chair John Mack (MS)http://www.businessinsider.com/morgan-stanley-chair-john-mack-farewell-party-2011-12
Wed, 07 Dec 2011 17:21:00 -0500John Carney
<p class="textBodyBlack"><img style="float:right;" src="http://static6.businessinsider.com/image/4ce2a160ccd1d50327010000/john-mack.jpg" border="0" alt="John Mack" /></p><p><a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a> is throwing a party for John Mack this evening.</p>
<p class="textBodyBlack"><span id="byLine"></span>Starting at 4:30,&nbsp;Morgan Stanley&nbsp;will host what it is calling an &ldquo;open forum&rdquo;&mdash;although sources say it is also cocktail party&mdash;honoring Mack, who is due to retire at the end of the year. Our sources say that attendance is expected to be so high that even a lot of Morgan Stanley people cannot get in.</p>
<p class="textBodyBlack"><span id="byLine"></span>There will, of course, be speeches by various folks&mdash;most likely including Mack himself and his successor, <a href="http://www.businessinsider.com/blackboard/james-p-gorman" class="hidden_link">James Gorman</a>. These will be broadcast on internal Morgan Stanley video feeds.</p>
<p class="textBodyBlack"><span id="byLine"></span>Mack retired as chief executive of Morgan Stanley on January 1, 2010.</p>
<p class="textBodyBlack"><span id="byLine"></span>Since then he has served as chairman of the board. Mack first joined Morgan Stanley in 1972. He rose to become a board member in 1987 and chief operating officer in 1993. &nbsp;He left Morgan Stanley in 2001, after a long power struggle with <a href="http://www.businessinsider.com/blackboard/phil-purcell" class="hidden_link">Phil Purcell</a> following the merger with Dean Whitter.</p>
<p class="textBodyBlack"><span id="byLine"></span>He served as CEO of <a href="http://www.businessinsider.com/blackboard/credit-suisse" class="hidden_link">Credit Suisse</a><strong><strong>&nbsp;</strong></strong>First Boston before returning to Morgan Stanley as chief executive in 2005.</p>
<p class="textBodyBlack"><span id="byLine"></span>He was known affectionately&mdash;and, often, not so affectionately&mdash;as &ldquo;Mack the Knife,&rdquo; allegedly for his penchant for cost cutting. &nbsp;Others say the nickname came from his sometimes blood-thirsty approach to trading. One colorful tale&mdash;that may even be true&mdash;from the 1980s has him screaming over the trading floor, &ldquo;There&rsquo;s blood in the water. Let&rsquo;s go kill!&rdquo;</p>
<p class="textBodyBlack"><span id="byLine"></span>One of the funnier nicknames I heard a Morgan Stanley guy use was &ldquo;Lady Mackbeth&rdquo;&mdash;for Shakespeare&rsquo;s lethal woman who always had blood on her hands.</p>
<p class="textBodyBlack"><span id="byLine"></span>Mack became one of the defining characters of Wall Street through the past few decades. We&rsquo;ll raise a glass to him&hellip;and maybe even try to sneak into the &ldquo;Open Forum.&rdquo;</p>
<p class="textBodyBlack"><strong><a href="http://www.cnbc.com/id/45587614">Read more at NetNet &gt;</a></strong></p><p><a href="http://www.businessinsider.com/morgan-stanley-chair-john-mack-farewell-party-2011-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/morgan-stanleys-john-mack-announces-he-will-step-down-as-chairman-at-end-of-the-year-2011-9Morgan Stanley Chairman John Mack Stepping Downhttp://www.businessinsider.com/morgan-stanleys-john-mack-announces-he-will-step-down-as-chairman-at-end-of-the-year-2011-9
Thu, 15 Sep 2011 11:57:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static4.businessinsider.com/image/4e723e22eab8ea4770000032/john-mack.jpg" border="0" alt="John Mack" /></p><p><a class="hidden_link" href="http://www.businessinsider.com/blackboard/morgan-stanley">Morgan Stanley</a> announced Thursday John J. Mack will be stepping down from his position as chairman at the end of this year.</p>
<p>Mack, who has been with Morgan Stanley for more than 30 years, will be replaced by chief executive <a href="http://www.businessinsider.com/blackboard/james-p-gorman" class="hidden_link">James Gorman</a>, the bank said in its release.</p>
<p>While Mack will retire from his full-time role at the firm and no longer serve as a member of the board, he will continue to serve in an advisory capacity, Morgan Stanley said.</p>
<p>The move should not come as a surprise.&nbsp;</p>
<p>Mack, 66, said he made it clear in 2009 that he would serve in the post of chairman for two years and then move on.</p>
<p>"I leave knowing that the people of Morgan Stanley have accomplished a great deal these last few years &ndash; carrying our company and our clients through the most challenging market conditions of our lifetime, while staying true to the culture and client-centered values that have long defined the Firm," Mack said in the statement.</p><p><a href="http://www.businessinsider.com/morgan-stanleys-john-mack-announces-he-will-step-down-as-chairman-at-end-of-the-year-2011-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/huntsman-names-economic-advisers-including-morgan-stanleys-john-mack-2011-9Huntsman Names Economic Advisers, Including Morgan Stanley's John Mackhttp://www.businessinsider.com/huntsman-names-economic-advisers-including-morgan-stanleys-john-mack-2011-9
Wed, 14 Sep 2011 12:01:00 -0400Zeke Miller
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4e205f3b49e2ae3038010000-400-/john-mack-morgan-stanley.gif" border="0" alt="<a class=" width="400" /></p><p>The struggling presidential campaign of former Utah Gov. Jon Huntsman announced Wednesday that <a href="http://www.businessinsider.com/blackboard/john-mack" class="hidden_link">John Mack</a>, the&nbsp;executive chairman of the board of <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a>, will serve the head of its Business Advisory Council.</p>
<p>Mack, along with <a href="http://www.businessinsider.com/blackboard/nike" class="hidden_link">Nike</a> co-founder and chairman Phil Knight, Caesars chairman, CEO, and president Gary Love man, and former U.S. Chamber of Commerce chairman Tom <a href="http://www.businessinsider.com/blackboard/bell" class="hidden_link">Bell</a>, "will provide the campaign with counsel and advice on issues related to the economy, business and jobs," the release said.</p>
<p>The prominent endorsements are surprising, given Huntsman's weak polling numbers &mdash; and indicates that Massachusetts Gov. <a href="http://www.businessinsider.com/blackboard/mitt-romney" class="hidden_link">Mitt Romney</a> still has trouble appealing to moderate business leaders.&nbsp;All four could potentially tap vast Wall Street and business donor networks for Huntsman &mdash; though they are not specifically in finance positions on the campaign.</p>
<p>In a statement Mack said&nbsp;&ldquo;Huntsman is a serious, pragmatic leader who knows how to restore confidence and stability to the marketplace,&rdquo; said Mack. &ldquo;He has a proven track record of creating jobs &ndash; both in business and as governor of Utah &ndash; and we look forward to working with him to move America forward.&rdquo;</p>
<p>Huntsman introduced a <a href="http://www.businessinsider.com/huntsmans-jobs-plan-gets-endorsement-of-wsj-editorial-board-raises-stakes-for-gop-frontrunners-2011-9">much celebrated</a> jobs and economic growth plan last month, that would drastically <a href="http://www.businessinsider.com/huntsman-jobs-plan-would-revolutionize-nations-tax-code-2011-8">restructure the nation's tax system</a>.</p><p><a href="http://www.businessinsider.com/huntsman-names-economic-advisers-including-morgan-stanleys-john-mack-2011-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/hedge-funds-morgan-stanley-2011-8There Was A Legitimate Run On Morgan Stanley During The Crisis (MS)http://www.businessinsider.com/hedge-funds-morgan-stanley-2011-8
Tue, 23 Aug 2011 09:22:00 -0400Courtney Comstock
<p><img style="float:right;" src="http://static4.businessinsider.com/image/abb9b9149ac068486b869500/bankrun.jpg" border="0" alt="bankrun" /></p><p>One reason why <a href="http://www.businessinsider.com/blackboard/morgan-stanley" class="hidden_link">Morgan Stanley</a> borrowed more than any other bank during the crisis, $107 billion, is that there was a run on its prime brokerage.</p>
<p>Hedge funds, Morgan's main source of prime brokerage assets, were either in need of money to repay their clients, who were redeeming money, seeking revenge on <a href="http://www.businessinsider.com/blackboard/john-mack" class="hidden_link">John Mack</a>, or had blown up, so they withdrew their accounts FAST, according to <a href="http://www.bloomberg.com/news/2011-08-22/morgan-stanley-at-brink-of-collapse-got-107b-from-fed.html">Bloomberg</a>.</p>
<p>More on why they were mad at Mack later. First, check out how fast hedge funds pulled their billions:</p>
<p>-- As of September 16th 2008 7 AM: $7 billion pulled. (&ldquo;Definitely some major outflows of PB balances at both GS ($5 b) and MS ($7 b),&rdquo; [an assistant at the <a href="http://www.businessinsider.com/blackboard/sec" class="hidden_link">SEC</a>, Matthew Eichner] wrote to NYFed employees on September 16 2008. &ldquo;Not pretty.&rdquo;)</p>
<p>-- As of September 16th 2008 10 PM: $20 billion pulled. (<a class="hidden_link" href="http://www.businessinsider.com/blackboard/morgan-stanley">Morgan Stanley</a> had suffered &ldquo;free credit withdrawals of $20 billion over the last two days, contributing to a $23 billion decline in the parent company liquidity pool to $106 billion,&rdquo; according to an email from someone at the NYFed.)</p>
<p>-- As of September 22 2008: $84.8 billion pulled, according to a <a class="hidden_link" href="http://www.businessinsider.com/blackboard/morgan-stanley">Morgan Stanley</a> treasurer&rsquo;s report released by the crisis commission.</p>
<p>-- As of September 29 2008: $128.1 billion pulled</p>
<p>Ultimately, the amount of assets hedge funds pulled from Morgan's prime brokerage totaled $130 billion, according to <a href="http://www.bloomberg.com/news/2011-08-22/morgan-stanley-at-brink-of-collapse-got-107b-from-fed.html">Bloomberg</a>.</p>
<p>August 31: $280 billion --&gt;&nbsp;November 30: $150 billion.</p>
<p>This was a huge problem because it hurt Morgan's liquidity, increasing their chances of becoming the next Lehman.</p>
<p style="padding-left: 30px;">&ldquo;Prime brokers were able to reuse clients&rsquo; assets to raise cash for their own activities,&rdquo; the financial crisis commission wrote in its final report, published in January.</p>
<p>To our knowledge, Morgan Stanley was always able to repay clients' deposits, but they also rang up a $107 billion tab with the Fed, without which, it (like every other bank) would have probably failed.</p>
<p>What's interesting is how much banks rely on hedge funds' assets. They use the money like it's part of their balance sheet, which might open the door for conflicts of interest. In Korea <a href="http://www.businessinsider.com/in-korea-its-against-regulations-to-manage-a-hedge-fund-assets-and-be-its-prime-broker-2011-6">it's illegal for banks to manage a hedge funds' assets and be its prime broker</a>, partly for this reason. In order to keep a hedge fund on as a client, banks might be tempted to find other clients to take a loss.</p>
<p>It's also worth noting that despite the serious concerns about its solvency, Morgan Stanley PR was busy reporting that everything was fine. Internally, that was the message too.</p>
<p>On September 17, after the stock plunged 24%, CEO <a class="hidden_link" href="http://www.businessinsider.com/blackboard/john-mack">John Mack</a> emailed employees: &ldquo;there is no rational basis for the movements in our stock...We&rsquo;re in the midst of a market controlled by fear and rumors, and short-sellers are driving our stock down...we have talked to [Henry Paulson and Christopher Cox about the issue]."</p>
<p>Then on September 19, short-selling was temporarily banned. One of our sources says that <a href="http://www.businessinsider.com/heres-one-story-from-the-crisis-that-wasnt-in-the-too-big-to-fail-movie-2011-6">John Mack's influence was a big reason for the ban</a>, AND that his campaign against short selling is why hedge funds pulled their money from Morgan, for payback. The short-sale ban killed many of their trades.</p>
<p><strong><a href="http://www.businessinsider.com/heres-one-story-from-the-crisis-that-wasnt-in-the-too-big-to-fail-movie-2011-6">Read more on that here &gt;</a></strong></p><p><a href="http://www.businessinsider.com/hedge-funds-morgan-stanley-2011-8#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/gay-marriage-new-york-john-mack-2011-7John Mack Backed NY's Gay Marriage Law Because He Grew Up With Segregationhttp://www.businessinsider.com/gay-marriage-new-york-john-mack-2011-7
Fri, 15 Jul 2011 11:45:00 -0400Aimee Groth
<p><img style="float:right;" src="http://static5.businessinsider.com/image/4e205f3b49e2ae3038010000-400-300/john-mack-morgan-stanley.gif" border="0" alt="John Mack Morgan Stanley " width="400" height="300" /></p><p>Before <a href="http://www.businessinsider.com/blackboard/andrew-cuomo" class="hidden_link">Andrew Cuomo</a> ushered one of the most impossible feats through Albany last month, he rallied up support from some of New York's most powerful business leaders.</p>
<p><a href="http://www.businessinsider.com/blackboard/lloyd-blankfein" class="hidden_link">Lloyd Blankfein</a>, Jerry Speyer (of Tishman Speyer) and hedge fund exec <a href="http://www.businessinsider.com/blackboard/paul-singer" class="hidden_link">Paul Singer</a> were just a few who argued that New York risks losing its competitive edge if the law doesn't pass. <a href="http://www.nytimes.com/2011/04/29/nyregion/gay-marriage-gets-backing-from-new-york-business-leaders.html">The New York Times</a> published a portion of the letter they all signed:</p>
<p style="padding-left: 30px;">&ldquo;As other states, cities and countries across the world extend marriage rights regardless of sexual orientation, it will become increasingly difficult to recruit the best talent if New York cannot offer the same benefits and protection."</p>
<p>The <a href="http://www.nytimes.com/2011/04/29/nyregion/gay-marriage-gets-backing-from-new-york-business-leaders.html">Times</a> also reported that Morgan Stanley's Chairman <a href="http://www.businessinsider.com/blackboard/john-mack" class="hidden_link">John Mack</a> had even deeper reasons for doing so: &ldquo;I grew up in North Carolina. I&rsquo;m 66 years old. I grew up when there was segregation. It makes an impression on you.&rdquo;</p>
<p>Mack also opined in <a href="http://www.crainsnewyork.com/article/20110605/SUB/306059997">Crain's</a> about the "devastating consequences of hate and inequality."</p>
<p>And <a href="http://www.businessinsider.com/wall-streets-hottest-offspring-3-2011-5#stephen-mack-10">he has a gay son</a>.</p>
<h3><a href="http://www.businessinsider.com/banker-endorse-same-sex-marriage-2011-5">Check out a list of all the New York business leaders who signed the letter here &gt; </a></h3><p><a href="http://www.businessinsider.com/gay-marriage-new-york-john-mack-2011-7#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/heres-one-story-from-the-crisis-that-wasnt-in-the-too-big-to-fail-movie-2011-6Here's One Story From The Crisis That Wasn't In The Too Big To Fail Moviehttp://www.businessinsider.com/heres-one-story-from-the-crisis-that-wasnt-in-the-too-big-to-fail-movie-2011-6
Mon, 20 Jun 2011 16:37:24 -0400Courtney Comstock
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ce2a160ccd1d50327010000/john-mack.jpg" border="0" alt="John Mack" /></p><p>This weekend we asked a couple of people on Wall Street what they thought about the HBO movie, <a href="http://www.businessinsider.com/too-big-too-fail-summary-in-two-minutes-2011-6">Too Big To Fail</a>.</p>
<p>"I didn't watch it because I heard it made Paulson out to be the hero," said one who had worked at Merrill.</p>
<p>Another thought it was fine but told us, "here's a story that wasn't in the movie."</p>
<p>Our friend went on to explain something that happened in September 2008, when stock in Morgan Stanley and Goldman Sachs, among other financials, was getting crushed by short sellers (as it should have been).</p>
<p>On September 19th, the <a href="http://www.nytimes.com/2008/09/20/business/20sec.html">SEC passed a temporary ban on short-selling in financial stocks</a>.</p>
<p>Our friend explains why that happened.</p>
<p>"People had convertible arbitrage shorts that were killing Morgan Stanley..."</p>
<p>So CEO John Mack, he claims, came up with a solution.</p>
<p>"[Mack] called Chuck Schumer."&nbsp;</p>
<p>On the call, he made the case against short sellers.</p>
<p>"Then Cox passed the short sale-ban on financial stocks."</p>
<p>He said that Mack's call got the government to ban shorts.</p>
<p>We're skeptical because it might just be a rumor that's grown bigger after John Mack sent the&nbsp;<a href="http://www.businessweek.com/investing/insights/blog/archives/2008/09/morgan_stanleys_john_mack_swings_into_action.html">infamous and universally slammed memo</a>&nbsp;in 2008 that said, "short sellers are driving our stock down," but it's an interesting and totally plausible theory. (And we've emailed Morgan Stanley for a comment.)</p>
<p>He explains, "It stopped the run on Morgan Stanley and Goldman, but it killed a lot of hedge funds that were shorting the stock."</p>
<p>It was a controversial ban. Hedge fund manager Jim Chanos <a href="http://www.nytimes.com/2008/09/20/business/20sec.html">said</a> at the time, &ldquo;Investors are best served when they can hear both the reasons to buy and the reasons to sell any given security... These emergency orders limit the free flow of information and ultimately will not work to help the United States maintain the freest, strongest and most liquid capital markets in the world.&rdquo;</p>
<p>John McCain said, &ldquo;If I were president today, I would fire him.&rdquo;</p>
<p>The ban hurt hedge funds in particular because they were the primary source of the shorts. So for pay back, hedge funds began pulling their money out of Morgan Stanley.</p>
<p>"They pulled their money; they were pissed."</p>
<p>Credit Suisse soon became the #1 prime broker.</p>
<p><strong><a href="http://www.businessinsider.com/too-big-too-fail-summary-in-two-minutes-2011-6">The 2 minute version of the movie Too Big To Fail &gt;</a></strong></p><p><a href="http://www.businessinsider.com/heres-one-story-from-the-crisis-that-wasnt-in-the-too-big-to-fail-movie-2011-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/too-big-too-fail-summary-in-two-minutes-2011-6The 2-Minute Version Of "Too Big To Fail"http://www.businessinsider.com/too-big-too-fail-summary-in-two-minutes-2011-6
Sun, 19 Jun 2011 11:37:00 -0400Thornton McEnery and Courtney Comstock
<p><img style="float:right;" src="http://static4.businessinsider.com/image/4ddd2c834bd7c8823a0b0000/too-big-to-fail.jpg" border="0" alt="Too Big To Fail" /></p><p>HBO's movie version of Andrew Ross Sorkin's bestseller "Too Big Too Fail" brought some of Hollywood's energy to the story of the 2008 financial crisis.</p>
<p>We've put together our favorite lines from the movie in approximate chronological order to give you a fast play-by-play of the film and its tale of the 2008 financial crisis.</p><h3>Bear Stearns has just barely escaped collapse and now Lehman Brothers is threatened. Hank Paulson shares his concerns about Lehman and its CEO, Dick Fuld, with Ben Bernanke.</h3>
<img src="http://static1.businessinsider.com/image/4dfbbef149e2ae69180d0000-400-300/bear-stearns-has-just-barely-escaped-collapse-and-now-lehman-brothers-is-threatened-hank-paulson-shares-his-concerns-about-lehman-and-its-ceo-dick-fuld-with-ben-bernanke.jpg" alt="" />
<br/><br/><h3>As Fannie and Freddie risk collapse, China warns Paulson that they have a lot of money invested in the mortgage giants. Paulson tells Bernanke the risks of not stepping in.</h3>
<img src="http://static3.businessinsider.com/image/4dfbbee3cadcbbd1770e0000-400-300/as-fannie-and-freddie-risk-collapse-china-warns-paulson-that-they-have-a-lot-of-money-invested-in-the-mortgage-giants-paulson-tells-bernanke-the-risks-of-not-stepping-in.jpg" alt="" />
<br/><br/><h3>Lehman talks to Bank of America about a merger. Bank takeover consultant Chris Flowers tells BOA's CEO Greg Curl he should consider it.</h3>
<img src="http://static1.businessinsider.com/image/4dfbbf1fccd1d502030a0000-400-300/lehman-talks-to-bank-of-america-about-a-merger-bank-takeover-consultant-chris-flowers-tells-boas-ceo-greg-curl-he-should-consider-it.jpg" alt="" />
<p><p>He goes on to say: "Paulson is posturing. He&rsquo;ll write a check just like he did for Jamie Dimon on the Bear deal. He has to; he can&rsquo;t lose another major bank in an election year. Besides, the guy made like a half a billion bucks at Goldman Sachs. He lets Lehman die, Goldman&rsquo;s biggest competitor, makes him look like he&rsquo;s still working for Goldman, he&rsquo;s just doing it out of a desk at Treasury&hellip;"</p></p>
<br/><br/><a href="http://www.businessinsider.com/too-big-too-fail-summary-in-two-minutes-2011-6#instead-merrill-lynch-and-boa-merge-dick-fuld-is-outraged-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/wall-streets-hottest-offspring-3-2011-5Introducing Wall Street's Hottest Offspringhttp://www.businessinsider.com/wall-streets-hottest-offspring-3-2011-5
Thu, 19 May 2011 15:28:00 -0400Thornton McEnery
<p><img style="float:right;" src="http://static5.businessinsider.com/image/4dd66b36ccd1d59e26210000/eliza-howard.jpg" border="0" alt="eliza-howard" /></p><p>These sons and daughters of Wall Street's finest are well on their way to becoming the next generation of hot shot career men and women.</p>
<p>Maybe family connections got their feet in the door at prestigious firms, but they couldn't get much further without the skills and charm these fourteen clearly exhibit. Each one has a great opportunity to hit it big in their fields of interest, which range from the world of finance, Hollywood, medicine, and beyond.</p>
<p>Oh, and they're all pretty good looking.</p><h3>Nicole Thain, daughter of John Thain</h3>
<img src="http://static6.businessinsider.com/image/4dd3d837cadcbbd451020000-400-300/nicole-thain-daughter-of-john-thain.jpg" alt="" />
<p><p>The daughter of former Merrill Lynch, and current CIT Group CEO John Thain, Nicole is a 25 year-old graduate of Yale, where <a href="http://www.yalebulldogs.com/sports/w-swim/mtt/thain_nicole00.html">she starred on the Bulldog Swim Team.</a></p>
<p>These days, Nicole is studying at INSEAD, the international business school at which her powerful father is a member of the board.</p></p>
<br/><br/><h3>Camille Strauss-Kahn, Daughter of Dominique Strauss-Kahn</h3>
<img src="http://static3.businessinsider.com/image/4dd54e0ecadcbb2243000000-400-300/camille-strauss-kahn-daughter-of-dominique-strauss-kahn.jpg" alt="" />
<p><p>Daughter of recently the disgraced IMF chief now known as "DSK," Camille is a student at Columbia University and lives in an apartment on the city's Upper West Side.</p>
<p>Not much is known about Camille, and even less can be discovered now as her facebook, twitter, LinkedIn and Scribd pages have all been taken down in the last 3 days.</p></p>
<br/><br/><h3>Elisa Lipsky-Karasz, daughter of John Lipsky</h3>
<img src="http://static3.businessinsider.com/image/4dd3ec23cadcbbe06c120000-400-300/elisa-lipsky-karasz-daughter-of-john-lipsky.jpg" alt="" />
<p><p>The daughter of the suddenly hyper-relevant IMF Interim Chairman <a href="http://www.businessinsider.com/5-big-questions-about-john-lipsky-answered-2011-5">John Lipsky</a>, Elisa was born during her father's IMF posting in Chile but grew up primarily in tony Brooklyn Heights and attended private school at Dalton before moving on to Princeton.</p>
<p>Elisa is once again calling Brooklyn Heights home and <a href="http://www.wwd.com/wwd-masthead/elisa-lipsky-karasz-1616687">is a contributor to <em>Women's Wear Daily</em></a> after stints at <em>Harper's Bazaar</em> and as the weekend gossip columnist for <em>The New York Post.</em></p>
<p><em><strong>UPDATE:</strong> Elisa is now back at Harper's BAZAAR<br /></em></p></p>
<br/><br/><a href="http://www.businessinsider.com/wall-streets-hottest-offspring-3-2011-5#eliza-howard-daughter-of-irving-place-capital-founder-john-howard-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/banker-endorse-same-sex-marriage-2011-5Lloyd Blankfein, Dan Loeb, And John Mack All Support Gay Couples Putting A Ring On It (GS, JPM, MS)http://www.businessinsider.com/banker-endorse-same-sex-marriage-2011-5
Tue, 03 May 2011 11:39:00 -0400Katya Wachtel
<p><img style="float:right;" src="http://static2.businessinsider.com/image/4cb863247f8b9af76a010300/gay-wedding.jpg" border="0" alt="gay wedding" /></p><p>Banking and hedge fund chiefs have joined with other business titans to urge New Yorkers to support Governor Andrew Cuomo&rsquo;s efforts to make gay marriage legal in the state.</p>
<p>Big Wall Street names include Goldman's Lloyd Blankfein (not surprising, <a href="http://www.businessinsider.com/gayest-banks-on-wall-street-2010-10">considering his bank has a good reputation in this area</a>), JP Morgan's Jes Staley, Third Point's Dan Loeb and Morgan Stanley's John Mack.</p>
<p>Of course, the first question that springs to mind is who hasn't signed the the sheet?</p>
<p>Jamie Dimon and James Gorman aren't on there, but both banks have a representative. BofA Merrill Lynch and Citi are totally absent on the other hand.</p>
<p>This is the letter, <a href="http://articles.cnn.com/2011-04-29/us/new.york.same.sex_1_marriage-equality-marriage-licenses-civil-marriage?_s=PM:US">titled</a>, "An open letter from business leaders on the importance of marriage equality," was originally posted on <a href="http://gothamist.com/2011/04/29/new_yorks_business_leaders_want_mar.php">Gothamist</a><br />(via <a href="http://news.hereisthecity.com/2011/05/03/goldman-jpmorgan-morgan-stanley-execs-endorse-same-sex-marriages/?utm_source=twitterfeed&amp;utm_medium=twitter">Here is the City</a>):</p>
<p style="padding-left: 30px;">New York has rich resources that position our state for continued success in the 21st century &ndash; a leading financial center, strong industry clusters, and renowned educational, research and cultural institutions. But major employers know that the single greatest asset New York has to offer is its ability to attract the best talent from around the world. This is crucial, because the size, quality and diversity of the talent pool are the first criteria for business in determining where to locate jobs.</p>
<p style="padding-left: 30px;">To remain competitive, New York must continue to contend with other world cities to attract top talent. Increasingly, in an age where talent determines the economic winners, great states and cities must demonstrate a commitment to creating an open, healthy and equitable environment in which to live and work.</p>
<p style="padding-left: 30px;">This is why it is so important that New York State grant full rights to all of its citizens by passing marriage equality. As other states, cities and countries across the world extend marriage rights regardless of sexual orientation, it will become increasingly difficult to recruit the best talent if New York cannot offer the same benefits and protections.</p>
<p style="padding-left: 30px;">Many employers have adopted non-discrimination policies and extended domestic partner benefits long before most cities and states passed them into law. As New Yorkers and business leaders, we believe that attracting talent is key to our state&rsquo;s economic future. We strongly urge New York State to enact marriage equality legislation to help maintain our competitive advantage in attracting the best and brightest people the world has to offer and to reaffirm our commitment to both freedom and fairness.</p>
<p>Here's the list of signatories&hellip;</p>
<ul>
<li>Candace K. Beinecke </li>
<li>Tom A. Bernstein</li>
<li> Lloyd C. Blankfein </li>
<li>Kevin Burke </li>
<li>Philippe P. Dauman </li>
<li>Daniel L. Doctoroff </li>
<li>Patrick C. Dunican, Jr. </li>
<li>Thomas Glocer</li>
<li> Jonathan N. Grayer </li>
<li>Klaus Kleinfeld </li>
<li>Rochelle B. Lazarus </li>
<li>Daniel S. Loeb</li>
<li> John J. Mack </li>
<li>Alan J. Patricof </li>
<li>Ronald O. Perelman </li>
<li>William C. Rudin </li>
<li>Kevin P. Ryan</li>
<li> Paul E. Singer </li>
<li>Jerry I. Speyer </li>
<li>Jes Staley</li>
<li> Stuart Match Suna</li>
<li> Kathryn S. Wylde </li>
<li>Strauss Zelnick </li>
<li>Mortimer B. Zuckerman</li>
</ul>
<p><strong><a href="http://www.businessinsider.com/the-untold-story-of-being-gay-on-wall-street-2010-9">Don't miss: The Untold Story of Being Gay on Wall Street &gt;</a></strong></p><p><a href="http://www.businessinsider.com/banker-endorse-same-sex-marriage-2011-5#comments">Join the conversation about this story &#187;</a></p>